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USA Gold and Sonoma are the Kentucky-based company’s two key brands |
UK/US. Imperial Tobacco Group has announced that, with all conditions having being satisfied, it has completed the acquisition of CBHC Inc, trading as Commonwealth Brands.
Commonwealth Brands, based in Kentucky, is the fourth-largest cigarette manufacturer in the US, with 3.7% of the country’s 376 billion cigarette market. The company employs some 720 people and has a factory in North Carolina which currently makes about 14 billion cigarettes a year.
“I am delighted that we have concluded the approvals process for our acquisition of Commonwealth Brands,” said Imperial Tobacco Group CEO Gareth Davis.
“We are targeting around £50 million (US$99 million) additional profit in the US in 2009 through the launch of further brands and products. As well as providing an enhanced operating platform, the acquisition provides us with access to the North American Free Trade Agreement region which will help us to be more competitive when developing our presence in Canada and Mexico, where we have recently launched Davidoff cigarettes.”
Commonwealth Brands manufactures and sells five high-quality discount cigarette brands across the US and in Puerto Rico, which together account for 13.2% of the discount segment. The two key brands are USA Gold and Sonoma. USA Gold is the eighth best-selling cigarette brand in the US and Sonoma is the 14th. Commonwealth Brands’ other cigarette brands are Montclair, Malibu and Riviera.
Commonwealth Brands is also the exclusive distributor in the US of Bali fine cut tobacco and McClintock make-your-own products. These are manufactured by Peter Stokkebye in Denmark.
MORE STORIES ON IMPERIAL TOBACCO
Imperial Tobacco makes approach for Altadis – 15/03/07
Imperial buys Commonwealth Brands – 08/02/07
Imperial Tobacco strikes first-quarter success – 31/01/07
Iain Napier prepares to take up Chairman’s role at Imperial Tobacco – 12/12/06
